Amazon FBA (Fulfillment by Amazon) has revolutionized the way sellers reach customers, offering convenience and scalability. However, mistakes can happen within Amazon’s systems. Whether it’s lost inventory, incorrect refunds, or overcharged fees, sellers may be owed money in the form of reimbursements. But how do you know what you can claim?
In this guide, we’ll break down the main types of reimbursements available to Amazon sellers and how to ensure you don’t leave money on the table. Leveraging FBA inventory reimbursement tools or professional Amazon FBA reimbursement services can also simplify the process.
Why does Amazon owe sellers reimbursements?
Amazon’s extensive operations involve receiving, storing, shipping, and managing millions of products daily. While the system is efficient, errors are inevitable. To maintain trust with sellers, Amazon offers reimbursement policies for situations where they are at fault.
Understanding these reimbursement types can help you identify issues and recover money you might not even realize you’re owed.
Types of reimbursements Amazon sellers can claim
Here are the most common types of reimbursements FBA sellers can claim:
Lost or misplaced inventory
Amazon stores your inventory in its fulfillment centers, but inventory can sometimes go missing. This may happen during:
- Inbound shipments to Amazon (items lost in transit or not properly checked in).
- Internal operations at the warehouse (inventory misplaced or not properly tracked).
How to claim:
- Use the Inventory Reconciliation Report to check for discrepancies between the items you shipped to Amazon and what was received.
- Compare inventory adjustments in Amazon’s reports to identify lost stock.
- If you discover discrepancies, you can file an FBA inventory reimbursement claim to recover the value of the missing items.
Damaged inventory
Amazon takes responsibility for inventory that is damaged while in its possession. This includes:
- Damage at the fulfillment center.
- Damage during shipping to customers (fulfilled by Amazon).
- Damage during removal or disposal processes.
How to claim:
- Check the Inventory Adjustments Report for items marked as damaged by Amazon.
- Review your Removal Order Details if inventory was damaged during the removal process.
- If Amazon is at fault, you’re entitled to compensation based on the Fair Market Value (FMV) of the damaged items.
Customer returns issues
Amazon makes the returns process seamless for customers, but errors can occur that leave sellers at a loss. Common return-related issues include:
- Unreturned items: A customer is refunded, but the product is never sent back to Amazon.
- Returned items damaged by customers: If the returned product is no longer sellable, Amazon should reimburse you.
- Incorrect refund amount: Amazon refunds the customer an amount higher than the original price, leaving you to cover the difference.
How to claim:
- Use the Returns Report to verify whether refunded orders were returned.
- Check the condition of returned items through your Manage Inventory tab to see if they were damaged or unsellable.
- File a claim if the customer hasn’t returned the item within 45 days of receiving the refund.
Overcharged FBA fees
Amazon calculates FBA fees based on the size and weight of your products. However, incorrect measurements can lead to overcharges. For example:
- Your product is misclassified into a larger size tier, resulting in higher fees.
- Amazon incorrectly weighs your product, leading to inflated shipping costs.
How to claim:
- Check your FBA Fee Preview Report for fee discrepancies.
- Compare Amazon’s recorded dimensions and weight with your product specifications.
- Submit a claim if you identify any errors.
Lost or mishandled removals
If you request a removal order (to have inventory sent back to you), Amazon may lose or damage the inventory during the process. Similarly, if you request inventory disposal, Amazon may mishandle the items.
How to claim:
- Review the Removal Order Details Report to confirm that all requested items were processed correctly.
- File a reimbursement claim for any lost or damaged items.
Destroyed inventory
Amazon may destroy your inventory under certain circumstances, such as expired products or items flagged for disposal. However, sellers have reported instances where inventory was destroyed without their authorization.
How to claim:
- Use the Inventory Adjustments Report to track items marked as destroyed.
- Ensure you did not authorize the destruction of those items.
- You’re entitled to a reimbursement for any inventory destroyed without your permission.
Inbound shipment issues
When you send inventory to Amazon’s fulfillment centers, items can go missing during transit or while being checked in. For example:
- Amazon only receives a partial shipment of what you sent.
- Items are lost or damaged during inbound processing.
How to claim:
- Use the Shipping Queue in Seller Central to track inbound shipments.
- Compare what was sent with what Amazon confirms was received.
- If there are discrepancies, submit an FBA inventory reimbursement request.
Multi-channel fulfillment errors
If you use Amazon’s fulfillment centers for non-Amazon sales (through multi-channel fulfillment), errors can still occur, such as lost or damaged items. Amazon may owe you reimbursement for these issues as well.
How to claim:
- Monitor your multi-channel orders and track inventory discrepancies through fulfillment reports.
How are reimbursements calculated?
Amazon reimburses sellers based on the Fair Market Value (FMV) of the product at the time of the claim. The FMV is typically lower than the retail price and excludes Amazon fees like referral fees or FBA fees.
For example:
Retail price: $50
Fair Market Value: $45
Amazon referral fee: $7.50
FBA fee: $5
Reimbursement amount:
$45 – ($7.50 + $5) = $32.50
Challenges sellers face with reimbursement claims
While Amazon’s reimbursement policies are helpful, the process can be challenging for sellers. Common obstacles include:
- Time-intensive: Manually pulling reports, cross-referencing data, and filing claims can take hours.
- Strict deadlines: Claims for lost or damaged inventory must be filed within 18 months, while customer return claims have a 90-day window.
Complex policies: Amazon’s rules and requirements for reimbursements can be confusing to navigate.
